Ramage made 43 appearances for Palace last season after joining on a permanent basis following two spells on loan at Selhurst Park.
He was subsequently handed a new two-year contract after Palace clinched promotion to the Premier League following the play-off victory over Watford.
However, the 29-year-old has not featured in Palace's three league games this term and his only run-out was against Bristol City in the Capital One Cup last week.
With Palace boss Ian Holloway having recruited Jack Hunt and Adrian Mariappa on deadline day, Ramage has been allowed to go out on loan.
Championship side Barnsley claim they beat off competition from a number of clubs to sign the former Newcastle youngster, who can play at right-back and centre-half.